In today’s competitive environment, product enhancing technical services (service products) are increasingly perceived as success factors in the production industry. Consequentially, there is a need for practically oriented models for systematic service product design. This paper defines service products and describes their functions and corresponding design dimensions. Furthermore, a recently developed phase model for systematic service product design is introduced, based on which an approach for the design of technical product service systems is presented. The approach aims at exploiting the largely unused potentials of the distribution and service network partners with which many production companies work together.